Why MMTC Share Price is Rising

The Indian stock markets are trading with mild weakness despite strong Asian cues. At the time of writing, the NSE Nifty 50 index is trading around 24,743 points, down roughly 10 points. The Sensex was down 30 points at 81,282 points.

Market sentiment is cautious due to global factors such as tariff news from the US impacting investor mood. The recent US Federal court ruling against reciprocal tariffs is seen as a positive development. Sector-wise, FMCG stocks have been under pressure recently, dragging indices lower, while PSU banks and media sectors have shown some gains.

Broader market indices show mixed performance with midcaps slightly down and smallcaps up.

One stock that is seeing gains in a subdued market is the stock of MMTC.

Here are the reasons for the same.

#1 Quarterly Results

The stock of MMTC gained ground followings its quarterly results.

The company reported a net profit for the quarter ended March 2025 which dropped to just Rs 22.3 million (m), compared to Rs 697.8 m in the same quarter last year. Revenue from operations has almost ceased as most of the other income boosted profitability.

However, despite the drop in net profit, the stock rallied. The BSE has sought clarification from MMTC, with reference to the volumes in the stock.

A reply from MMTC is still awaited. Heavy trading volumes have accompanied the price rise, with intraday volumes exceeding the two-week average, reflecting strong investor interest.

#2 Positive Sentiment for PSU Stocks

In general, we have seen sharp rallies in government owned stocks post their results. ITI for example has rallied sharply by almost 15% post results on 27 May 2025. Similarly, IFCI has seen a near 24% rally since declaring results on 26 May.

This sentiment was also reflected in the stock of MMTC.

What Next?

MMTC is currently not carrying on its regular business operations as usual, according to the company's Annual Report for 2023-24.

However, MMTC remains active in related areas and subsidiaries, with ongoing efforts to restructure and diversify its operations.

Its financial performance has been uneven recently, reflecting the continued restructuring and adaptation to a changing environment.

How Shares of MMTC have Performed Recently

Over the last one month, the share price of MMTC has gained 37.8% from levels of Rs 57 to the current levels of Rs 78. In the past one year, the share price of the company has gained almost 10%.

The stock hit a 52-week high of Rs 131.88 on 26 July 2024. The stock also hit a 52-week low of Rs 42.55 on 7 April 2025.

About MMTC

MMTC is a large public sector trading company, incorporated in 1963 and operating under the Ministry of Commerce & Industry.

MMTC was established to focus exclusively on the export of mineral ores and the import of essential metals, following the rapid growth of the State Trading Corporation (STC) which was handling broader trading activities since 1956.

The government decided to bifurcate STC to create MMTC to specialise in minerals and metals trade.

Initially, MMTC's major markets were Japan and South Korea, and by 1994 it expanded into European markets, exporting iron ore to Slovakia and Romania. The company also started importing gold and silver under special licenses for domestic supply, establishing gold vaults in Hyderabad and Vizag.

It also trades wind power generated at its wind farm in Karnataka. The company has expanded into duty-free retail and gold refining through joint ventures.

To know more, check out MMTC fact sheet and latest quarterly results. You can also compare MMTC with its peers on our website.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...